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Eastman announces Q1 2007 financial results
27 Apr '07
4 min read
Fibers : Sales revenue increased by 2 percent as higher selling prices were offset by lower sales volume. The higher selling prices were due to efforts to offset higher raw material and energy costs, particularly for wood pulp and methanol.
The lower sales volume was attributed to customer buying patterns for both acetyl chemicals and acetate yarn product lines. Operating earnings declined to $59 million in first quarter 2007 compared with $66 million in first quarter 2006 primarily due to lower sales volume and higher raw material and energy costs.
Performance Chemicals and Intermediates : Sales revenue increased by 27 percent as higher sales volume more than offset lower selling prices, with both sales volume and selling prices significantly impacted by contract ethylene sales resulting from the divestiture of the polyethylene business.
Excluding the contract ethylene sales and divested product lines associated with the Arkansas manufacturing facility, PCI's sales revenue increased 18 percent due to an increase in sales volume of 14 percent and higher selling prices. The higher sales volume and increased selling prices were attributed to strong demand, particularly for olefin-based derivative products in Asia Pacific and the United States.
Operating earnings, excluding asset impairments and restructuring charges and accelerated depreciation, increased to $61 million in first quarter 2007 compared with $41 million in first quarter 2006 due to higher selling prices and increased sales volume, with contract ethylene sales having minimal impact.
Performance Polymers: Sales revenue declined by 22 percent due to the divestiture of the polyethylene business during the fourth quarter 2006. Sales revenue for the continuing PET polymers product lines increased 9 percent due to higher sales volume primarily in Latin America attributed to continued strong demand in the region. First quarter 2007 results included asset impairments and restructuring costs of $21 million and accelerated depreciation of $7 million.
Excluding those items, operating results for continuing PET product lines declined to a loss of $23 million in first quarter 2007 compared to a loss of $6 million in first quarter 2006.
The decline, primarily in North America, was due to lower selling prices and higher and continued volatile raw material and energy costs which resulted in compressed gross margins. The results were impacted by costs associated with the new PET facility based on IntegRex technology becoming fully operational and the timing of the commercial launch of ParaStar PET which is produced from the IntegRex facility.
The lower sales volume was attributed to customer buying patterns for both acetyl chemicals and acetate yarn product lines. Operating earnings declined to $59 million in first quarter 2007 compared with $66 million in first quarter 2006 primarily due to lower sales volume and higher raw material and energy costs.
Performance Chemicals and Intermediates : Sales revenue increased by 27 percent as higher sales volume more than offset lower selling prices, with both sales volume and selling prices significantly impacted by contract ethylene sales resulting from the divestiture of the polyethylene business.
Excluding the contract ethylene sales and divested product lines associated with the Arkansas manufacturing facility, PCI's sales revenue increased 18 percent due to an increase in sales volume of 14 percent and higher selling prices. The higher sales volume and increased selling prices were attributed to strong demand, particularly for olefin-based derivative products in Asia Pacific and the United States.
Operating earnings, excluding asset impairments and restructuring charges and accelerated depreciation, increased to $61 million in first quarter 2007 compared with $41 million in first quarter 2006 due to higher selling prices and increased sales volume, with contract ethylene sales having minimal impact.
Performance Polymers: Sales revenue declined by 22 percent due to the divestiture of the polyethylene business during the fourth quarter 2006. Sales revenue for the continuing PET polymers product lines increased 9 percent due to higher sales volume primarily in Latin America attributed to continued strong demand in the region. First quarter 2007 results included asset impairments and restructuring costs of $21 million and accelerated depreciation of $7 million.
Excluding those items, operating results for continuing PET product lines declined to a loss of $23 million in first quarter 2007 compared to a loss of $6 million in first quarter 2006.
The decline, primarily in North America, was due to lower selling prices and higher and continued volatile raw material and energy costs which resulted in compressed gross margins. The results were impacted by costs associated with the new PET facility based on IntegRex technology becoming fully operational and the timing of the commercial launch of ParaStar PET which is produced from the IntegRex facility.
Eastman Chemical Company
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